The approval you have never refused

A sign-off limit set at an earlier size of business quietly converts senior judgement into a queue, and moves the risk it was built for out of view.

By Steve 5 min read
Abstract bridge artwork for The approval you have never refused

Somewhere in most businesses there is a number (£1,000, £5,000, £25,000) above which a purchase needs a director’s signature. It is often older than the current price list, the current headcount, and occasionally the current director. Nobody set it wrongly. It was set when the average order was a fraction of what it is now, and it has stayed put while everything around it moved. Two things drift underneath a fixed threshold. Supplier prices rise, so the same physical purchase costs more. And the business grows, so there are more…

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